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Edited version of private advice
Authorisation Number: 1052283125691
Date of advice: 5 August 2024
Ruling
Subject: CGT - sale of property
Question
Will any capital gain or loss resulting from the sale of the property be disregarded under subsection 104-10(5) of the Income Tax Assessment Act 1997?
Answer
Yes. The information provided indicates that the asset was acquired before 20 September 1985. Therefore, you can disregard any capital gain or capital loss from the disposal of the property.
This ruling applies for the following period:
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
The deceased acquired 100 percent ownership interest in the property and was registered on the Title prior 20 September 1985.
The land size of the property is less than two hectares.
The deceased passed away prior 20 September 1985.
Probate of the Will was granted to Mr X, the deceased's relative, as the Executor and Trustee.
The deceased's Will, dated XX XX XX gave and bequeathed to the Trustee:
• the property together with all furniture and contents therein upon trust to sell, call in and convert the property, furniture and contents into money at such time or times at such a price or prices wither by public auction or private contract, upon such terms and conditions as the Executor shall in his absolute discretion think proper with power to postpone such sale, calling in and conversation for so long as the Executor thinks fit
• directs the Trustee to stand possessed of the proceeds upon trust for the sole benefit of you
• the residual of the estate after payment of funeral and testamentary expenses and Probate was, in equal shares left for 3 relatives, one being you.
Mr X in his capacity as the legal personal representative of the deceased estate, was registered on the title of the property on XX XX XX.
You attained the age of 18 on XX XX XX.
You became the sole proprietor of the property and were registered on the Title on XX XX XX.
The property has never been used to generate assessable income. There have been no renovations, alteration or capital improvements made to the property. It remains in its original condition.
The property has been placed on the market for sale.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 104-10(5)